PHOENIX -- The upcoming week is an important one for the future of the Arizona Diamondbacks, as House Bill 2704, which would provide funding for renovations for Chase Field, makes its way through the Arizona State Senate.
The tax-recapture bill would provide for a public-private partnership between the state, Maricopa County, the City of Phoenix and the Diamondbacks in refurbishing Chase Field, which is owned by the county, was opened in 1998 and is one of the older facilities in Major League Baseball.
¡°It does not involve new taxes; it's just a redirection of tax dollars,¡± Commissioner Rob Manfred said. ¡°I remain hopeful that the bill passes and secures the future of the Diamondbacks in that facility.¡±
The Arizona House easily passed the bill, 35-25, with bipartisan support, and the Diamondbacks remain confident that it will also pass the Senate and be signed into law by Gov. Katie Hobbs.
The bill does not involve new taxes, but instead recaptures sales and income tax dollars associated with the ballpark and team.
While the state and county are backing the bill, Phoenix Mayor Kate Gallego recently sent a letter to Gov. Hobbs, urging significant changes to the bill. Manfred is aware that Gallego has said that she believes the Commissioner¡¯s stance is that he would never allow the Diamondbacks to move.
¡°It's my understanding that the Mayor has been saying certain things about what I'm thinking, which I find to be very surprising, because neither I, nor anyone from my office, have ever spoken to the Mayor of Phoenix,¡± Manfred said. ¡°So, I¡¯m not clear on how she has formed an opinion as to what I think.¡±
Manfred declined to say what would happen if the bill does not pass, preferring to remain optimistic that it will.
The situation with the Diamondbacks is not the same as the stadium situation with the Rays in St. Petersburg. Manfred has been said to not be in favor of the relocation of the Rays because of the fact that the city was willing to help fund a new ballpark, which is not the case in Arizona.
In contrast, as HB 2704 has evolved, the Diamondbacks have made numerous concessions to ease the concerns of lawmakers, including Gallego.
The team has agreed to a cap on the number of years the recapture would be in place, took the income tax part out of the equation for the City of Phoenix and removed the portion of the tax that is used for public safety, such as police, fire and emergency services. It also exempted the part of the tax that goes to fund education and gave Maricopa County back their portion of the tax that covers jails.
The structure is similar to what the NFL's Arizona Cardinals have at their stadium in Glendale. That partnership has allowed State Farm Stadium to remain a state-of-the-art facility and continue to host events like the Super Bowl, the College Football Playoffs as well as the NCAA Men¡¯s and Women¡¯s Final Four.
In addition, the Diamondbacks have pledged to spend at least $250 million of their own money on the renovations, which team president/CEO Derrick Hall has estimated will cost between $400-$500 million currently, and with the Diamondbacks pledging to stay in the facility for another 30 years as part of the agreement, there will no doubt be further costs down the road to keep the ballpark up to standard.
That is on top of the money the Diamondbacks have already spent on the ballpark over the years.
¡°The Diamondbacks have spent literally hundreds of millions of dollars keeping the facility up,¡± Manfred said. ¡°It¡¯s at an age where there needs to be a private-public partnership to keep the facility in shape. This bill was really well-crafted to protect the interests of the public and to make sure everybody understood what the obligations were.¡±